Divorce and Debt
Posted on 02. Dec, 2009 by admin in General
Credit card debt can be bad enough, but divorce can make it a lot worse. If your marriage is over, there are some things that you need to know about debt and divorce. This article will help you figure out who will be responsible for debt before, during and after marriage and divorce. While it’s not a complete guide, it will help you learn about bad credit and paying off credit cards. Divorce is hard, but settling your debt doesn’t have to be.
When you open an account, it’s essentially a contract between you and the lender. Of course, you have the right to use the card whenever you want, but that comes with the responsibility to pay the balance. It doesn’t matter when the charges are made- but charges made by individuals before marriage are usually still their responsibility in the event of divorce. Not every situation is cut and dried, though- if you are a sole account holder but your spouse is an authorized user, you are still liable for the whole bill. To cut off charges after divorce, remove your ex-spouse from the account and deactivate their card. In fact, the spouse that was added to the account can dispute any charges that appear on their credit report. All they have to do is contact the credit bureau and let them know that the account does not belong to them. In the case of a joint account, both parties are responsible for the account balance. State credit card laws are all different, but usually a divorce court judge will split the debt between the two spouses. Your divorce decree should have a stipulation as to who is responsible for what portion of the debt.
To make the transition as easy as possible, talk to your divorce lawyer and your spouse about your debt. Be ready to supply documentation- proof of account ownership, and purchase histories. The more you can do to straighten out the situation, the less likely you’ll be left holding the bag.